Section 3 — ANNUAL
PERCENTAGE
RATES
& INTEREST CHARGES (continued)
Daily Balance
We
calculate interest on your Account each Billing Period first by
calculating your daily balances. The following explains how we do that.
Here’s
how and when
Transactions,
fees and credits are applied to
the balances on your Account:
•
We
add the amount of a Purchase or Balance
Transfer
to the
Purchase balance as of the post date on your statement.
•
We
add the amount of a Cash Advance to the Cash Advance balance
as of the post date on your statement.
•
We
add a Balance
Transfer
fee to the Purchase balance as of the post
date on your statement.
•
We
add the amount of any eligible
Transaction
under Citi Flex Pay or a
Citi Flex Loan to a Citi Flex Plan balance as of the post date on your
statement. If you moved an amount from another balance within your
Account to a Citi Flex Plan, we will credit the other balance in the
amount you added to a Citi Flex Plan in order to avoid double counting
that amount. If a Plan Fee applies, the first Plan Fee will be added to the
Citi Flex Balance as of the end of the billing period in which the Plan was
created. A Plan Fee will then be added to the Citi Flex Plan balance at
the end of each subsequent billing period until the Plan is paid in full.
•
We
add a Cash Advance fee to the Cash Advance balance as of the
post date on your statement.
•
We’ll
add any other fees to the balance of our choice. If you’re charged
interest in a Billing Period, but the amount calculated is less than
$0.50, we’ll add additional interest to the balance(s) of our choice so
that you’ll be charged $0.50 in interest for that Billing Period.
•
We
subtract credits and payments as of the post date shown on
your statement.
• Each balance may have a
different
APR. Certain categories of
Transactions
in a balance may have multiple APRs. For example, you
may make a Purchase or Balance
Transfer,
or create a Citi Flex Plan,
that’s
subject to a promotional APR.
Your
balances, and their
corresponding APRs, are shown on your statement.
Note: The post date shown on your statement will usually be the date
of the
Transaction,
but it may be
later.
Here’s
how we calculate each of the daily Purchase, Cash Advance
and Citi Flex Plan balances on your Account:
•
We
start with the daily balance from the end of the previous
day.
continued on next page
3
•
We
add any new
Transactions,
fees and other charges, including
interest accrued on the previous
day’s
balance. This means that
interest is compounded
daily.
•
We
subtract any credits or payments credited as of that
day.
•
We
make additional adjustments as appropriate, subject to
applicable law (as an example, for a disputed charge). This gives us
the daily balance for that
day.
Daily balance for purchases from the previous day
+ New purchases
+ Fees and interest accrued on the previous
day’s
Purchase
balance
– Payments, credits and adjustments posted that day
= New daily balance for Purchases
Interest Calculation.
Each daily balance may have a
different
APR.
Certain categories of
Transactions
in a daily balance may have multiple
APRs. For example, you may make a Purchase or Balance
Transfer
that’s
subject to a promotional APR. If a daily balance on your Account
is subject to an APR, we’ll charge interest on that daily balance.
We
use the daily balance method (which includes new
Transactions).
If
interest applies to a balance, it will start applying on the day a charge is
added to that balance and continue until that balance is paid in full.
We
consider a credit balance as a balance of zero when calculating
interest on that balance.
•
We
multiply each daily balance by its applicable daily periodic rates
(each applicable APR divided by 365).
•
We
do this for each day in the Billing Period. This gives us the daily
interest amounts.
• Then we total all the daily interest amounts for all the daily balances.
This gives us the total interest for the Billing Period.
Note:
Your
balances, and their corresponding APRs, are shown on
your statement.
Calculating the New Balance.
To
calculate the New Balance at the end
of each Billing Period, we begin with the total Account balance at the start
of that Billing Period. Then we add any
Transactions
that are new to the
Account during that Billing Period. Then we subtract any credits applied
or payments made during that Billing Period. Then we add any interest
charges or fees incurred during that Billing Period and make any other
adjustments, as applicable (for example, if you have disputed a charge).
Grace Period on Purchases.
You
won’t pay any interest on
Purchases if you pay the Adjusted New Balance, including any Balance
Transfers,
plus any Citi Flex Plan Payment Amount, in full by the
payment due date shown on your statement each Billing Period.
We
call this a
grace period on purchases.
If you don’t pay your Adjusted
New Balance in full, plus any Citi Flex Plan Payment Amount, by the
payment due date in a Billing Period, you’ll pay interest on your
Purchases from the date they’re posted to your Account.
You
also
won’t have a grace period on Purchases again until you pay the
Adjusted New Balance in full, plus any Citi Flex Plan Payment Amount,
by the payment due date 2 Billing Periods in a
row.
There’s
no grace period on Balance
Transfers,
Cash Advances, and
Citi Flex Loans. This means you’ll pay interest on Balance
Transfers,
Cash Advances, and Citi Flex Loans from the date these
Transactions
post to your Account.
•
Penalty APR for new
Transactions
(less than 60 days late).
If you make a Late Payment and
it’s
less than 60 days late or you
have a Returned Payment, the penalty APR only will apply to new
Transactions. We’ll
review your Account from time to time, to
determine if any penalty APR should be reduced.
•
Penalty APR for existing balances and new
Transactions
(60 or
more days late).
If we haven’t received your Minimum Payment Due
within 60 days after its due date, we may apply the penalty APR to
both the existing balances and new
Transactions.
If you make your
next 6 consecutive Minimum Payments Due on time, we’ll stop
applying the penalty APR to existing balances and new
Transactions.
If you don’t make your next 6 consecutive Minimum Payments Due on
time, the penalty APR may continue to apply indefinitely to existing
balances and new
Transactions.